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Graphical Derivation of Beta for Three Scenarios Security Market Line for Three Scenarios Characteristic Line for Three Scenarios Capital Market Line for Three Scenarios Figure

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Graphical Derivation of Beta for Three Scenarios

Security Market Line for Three Scenarios

Characteristic Line for Three Scenarios

Capital Market Line for Three Scenarios

Figure 1 Required Return, r%) Nondiversifiable Risk, B Scenario 1 ..... Scenario 2 Scenario 3 As graphical representations of the capital asset pricing model (CAPM), Figure 1 depicts the

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